Restaurant & Hotel Accounts Quries
This query is : Resolved
15 June 2020
Dear Sir,
1. I have purchased Fry pan & Mixie for business purpose. That value of the item is Below 5K. Now I treated as Asset or Expenses ???
2. Purchased provision items like rice, wheat & Maida etc for business purpose. we get tax invoice with GST, now I utilize that GST amount or not..
3. And we have own land, so we construct the building for hotel business. So we spend money for Building material purchase (Sand, Cement etc) & Labour charges. Now I treat the cost as asset or expenses.
Please advise.
Thanks in Advance.
1. I have purchased Fry pan & Mixie for business purpose. That value of the item is Below 5K. Now I treated as Asset or Expenses ???
2. Purchased provision items like rice, wheat & Maida etc for business purpose. we get tax invoice with GST, now I utilize that GST amount or not..
3. And we have own land, so we construct the building for hotel business. So we spend money for Building material purchase (Sand, Cement etc) & Labour charges. Now I treat the cost as asset or expenses.
Please advise.
Thanks in Advance.
15 June 2020
1 Treat it as expenses. For hotel use life will be not more than one year.
2 Claim ITC.
3 It will be asset capitalise it.
2 Claim ITC.
3 It will be asset capitalise it.
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15 June 2020
Correction of reply 2 No ITC can be claimed.
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16 June 2020
Hi Sir, Thanks for Information. Point No. 2 - why not eligible for ITC Claim. Any provision is there ??. Please advise.
16 June 2020
If you pay 5% GST no ITC can be claimed. ITC can be claimed on 12% and 18% GST payment.
19 June 2020
Mr Seetharaman sir,
Correction to Ans. 3rd-
Section 17(5)(d) restrict ITC on goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.
So any ITC cannot be claimed on inputs used for construction of Building.
Correction to Ans. 3rd-
Section 17(5)(d) restrict ITC on goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.
So any ITC cannot be claimed on inputs used for construction of Building.
19 June 2020
Yes, agree with you no ITC can be claimed.
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